Ukraine’s production of coated steel coils increased by 60% y/y in 2023

In 2023, Ukrainian producers of coated steel increased production of painted coils by 60% compared to 2022, up to 65 thousand tons. This is stated in a study by Metipol.

Last year, Module Ukraine produced 19.3 thousand tons of products (+33% y/y), Heavy Metal – 25.1 thousand tons (+53% y/y), Polysteel – 6.2 thousand tons (a new company), ROM – 14.6 thousand tons (+14.6% y/y). At the same time, in 2021, the production of the relevant products was at 61 thousand tons.

«In 2023, the production of coated steel coils by four companies exceeded the pre-war figures of 2021. A new production line is planned to be launched in 2024, and another, the smallest, painting line is at the project stage,» the company says.

In total, these enterprises sold 59.4 thousand tons of polymer-coated steel to the domestic market over the year, taking 21.4% of the domestic market. Heavy Metal shipped the most products – 21.6 thousand tons (7.8% of the market).

«This is the highest figure for the entire period of analysis of the Ukrainian market, which will grow throughout 2024 as all companies increase production and their share,» Metipol adds.

In 2023, only 6 thousand tons of painted coils were shipped for export, compared to 11 thousand tons in 2022 and 20 thousand tons in 2021. At the same time, last year, exporters additionally re-exported about 2.5 thousand tons of imported painted coils.

«Over the two years of the war, there has been a significant decline in Ukrainian steel exports. The main reason is the same as for the problems with raw material imports – uncompetitive wartime logistics. The blockade of borders by Poland and Slovakia and the high cost of production at the moment also had a strong impact on the decline in exports to Europe,» the company comments.

Imports of polymer-coated metal in 2023 amounted to 220.39 thousand tons, up 72% compared to 2022. European suppliers accounted for 96 thousand tons (+67% y/y). China accounted for another 95.94 thsd tonnes (+87% y/y).

«Supplies from China could have been even higher if not for the introduction of anti-dumping duties in September 2023. For the Ukrainian market, this is a signal that a segment of 100 thousand tons is opening up for import substitution and attracting alternative suppliers of painted metal,» the study says.

In general, the apparent consumption of painted steel in Ukraine in 2023 amounted to 277 kt, up 82% y/y. The figure is at the level of 2016, when the consumption of the relevant products was below 300 thousand tons. In the peak year of 2021, 362 thousand tons of painted steel were sold.

Domestic producers accounted for 21.4% of the market (19.6% in 2022 and 13.2% in 2021), while imported producers accounted for 78.6%.

As GMK Center reported earlier, Ukraine is rapidly approaching the status of a net importer of flat products in tons. Last year, the domestic market imported 0.9 million tons of flat products and exported 1.2 million tons. In monetary terms, Ukraine is already a net importer: exports in 2023 amounted to $782.3 million, while imports amounted to $1.03 billion.